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A COMPARATIVE STUDY ON THE

FINANCIAL PERFORMANCE OF HDFC BANK
AND ICICI BANK
Dr. R. Senthil Kumar Ms. Jeevanivetha. K
Assistant Professor of Commerce Student of M. Com Corporate Secretaryship
Dr. N.G.P. Arts and Science College, Coimbatore Dr. N.G.P. Arts and Science College, Coimbatore

Abstract: The comparative study follows the same general comparison process as our everyday comparison activities. This analysis
is focused on two banks' top rankings and rivalry: HDFC Bank and ICICI Bank. The financial situation, profitability, and liquidity
status of both institutions are determined using the comparative analysis. The study's time frame is from 2017 to 2022 and covers
HDFC Bank and ICICI Bank. Secondary data is derived from the annual reports (Balance sheet and Profit and Loss) of HDFC Bank
and ICICI Bank. We may learn about the trend analysis of both Banks through this study.
Index Terms - Comparative analysis, Profitability, trend, and Banks
________________________________________________________________________________________________________

I. INTRODUCTION:
Secondary analysis of quantitative data is relatively prevalent in comparative research, presumably in part because it is
expensive to collect primary data for such large topics as a nation's policy environment. This study mostly analyses aggregate
data. A lot of data is compared all the time, especially data from the government. Balancing the amount of money spent on
social welfare is frequently necessary when comparing welfare states.
Incorporated in August 1994 under the name "HDFC Bank Limited," the HDFC Bank has its registered office in Mumbai,
India. The HDFC Bank began operating as a Scheduled Commercial Bank in January 1995. The Housing Development Finance
Corporation (HDFC) was one of the first entities to receive "in principle" authorization to create a bank in the private sector as
part of the Reserve Bank of India's (RBI) 1994 deregulation of the Indian Banking Industry. The headquarters of HDFC Bank
are located in Mumbai.
A global bank with its headquarters in Mumbai, ICICI Bank Limited offers financial services. It offers a wide range of
banking products and financial services for corporate and retail customers through a number of delivery channels and
specialised subsidiaries in the disciplines of investment banking, life, non-life insurance, venture capital, and asset management

II. STATEMENT OF THE PROBLEM:

In the last 20 years, banks have undergone rapid change as a result of their innovative services, entry into retail
banking, and expansion of their service offering. Banks in the private sector have competitive advantages in automation
and technology, product innovation, risk management, quick decision-making, individualized service, progressive HRM
policies, expertise in niche segments, and other areas, despite their lack of branch networks and market coverage.
Customers are receiving better services from them.

III. OBJECTIVE:

 To ascertain the comparative study on ICICI and HDFC banks.

 To give findings and suggestions to enhance the performance of the banks.

IV. SCOPE OF THE STUDY:

The current project aims to examine the ICICI and HDFC banks' financial results in the Coimbatore region. The
expansion of bank branches, deposits, credits, interest rates, and services have all received special attention from the
researcher. Financial statement analysis can be used to determine the current trend and the relationship between the
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financial and profitability statement components. Profitability, liquidity, and solvency of a corporation. These techniques
may comprise computations and comparisons of the results to prior and secondary data of the banks, rivals' annual reports,
or industry averages in order to determine the relative strength and performance of the company under investigation. This
report examines the financial performance of the ICICI and HDFC banks from 2018 to 2022.
V. RESEARCH METHODOLOGY:
SOURCE OF DATA COLLECTION:
The secondary data are collected from annual reports of ICICI and HDFC bank for the year 2018-2022 and the
reviews are collected from published and unpublished dissertation works, books, and journals related to this study.
TOOLS USED IN THE STUDY:
 Comparative Analysis

PERIOD OF THE STUDY:

This study was conducted for the five (5) years of the annual report of the company for the year 2018 – 2022.

VI. LIMITATION OF THE STUDY:

 The limitation of the study is only that the data is collected from a secondary source of the banks.
 This study depended only on ICICI and HDFC banks.
 This study is based only on the comparative study of both ICICI and HDFC Bank for the past 5 years which
may fall under 2018 to 2022.
VII. REVIEW OF LITERATURE:
(Dr. Seema Pandit, Jash Gandhi (2021): Study compare the performance of SBI and HDFC Bank by applying
CAMEL Model. The results shows that the SBI Bank performed well on the parameters of Capital Adequacy, Asset Quality
and Management whereas HDFC Bank performed well on the parameters of liquidity.

(Nandini Thakur 2020): Conducted a study on the financial statement analysis of HDFC Bank. The study is
conducted over past Five years (2015-2019). The study conclude that financial performance of the bank was strong during
the period of the study.

VIII. COMPARATIVE ANALYSIS:

Table 1: For the years 2017 to 2018:

Comparative study of Balance sheet of HDFC Bank for the Financial Year 2017 - 2018 ( In Crores)
As on 31st March As on 31st March Increase /
Equity And Liabilities %
2017 2018 Decrease
Equity Share Capital 512.51 519.02 6.51 1.27
Reserves & Surplus 88,949.84 1,05,775.98 16,826.14 18.92
Deposits 6,43,639.66 7,88,770.64 1,45,130.98 22.55
Borrowings 74,028.87 1,23,104.97 49,076.10 66.29
Other Liabilities & Provisions 56,709.32 45,763.72 -10,945.60 -19.30
Total Capital and Liabilities 8,63,840.20 10,63,934.33 2,00,094.13 23.16
Cash and Balances with Reserve
Bank of India 37,896.88 1,04,670.47 66,773.59 176.20
Balances with Banks Money at Call
and Short Notice 11,055.22 18,244.63 7,189.41 65.03
Investments 2,14,463.34 2,42,200.24 27,736.90 12.93
Advances 5,54,568.20 6,58,333.09 1,03,764.89 18.71
Fixed Assets 3,626.74 3,607.20 -19.54 -0.54
Other Assets
42,229.82 36,878.70 -5,351.12 -12.67
Total Assets 8,63,840.20 1063934.33 2,00,094.13 23.16

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Comparative study of Balance sheet of ICICI Bank for the Financial Year 2017 - 2018 (In Crores)
As on 31st As on 31st March Increase /
Equity And Liabilities %
March 2017 2018 Decrease
Equity Share Capital 1,165.11 1,285.81 120.70 10.36
Reserves & Surplus 98,785.98 1,03,873.12 5,087.14 5.15
Deposits 4,90,039.06 5,60,975.21 70,936.15 14.48
Borrowings 1,47,556.15 1,82,858.62 35,302.47 23.92
Other Liabilities & Provisions 34,245.16 30,196.40 -4,048.76 -11.82
Total Capital and Liabilities 7,71,791.46 8,79,189.16 1,07,397.70 13.92
Cash and Balances with Reserve Bank of
India 31,702.41 33,102.38 1,399.97 4.42
Balances with Banks Money at Call and
Short Notice 44,010.66 51,067.00 7,056.34 16.03
Investments 1,61,506.55 2,02,994.18 41,487.63 25.69
Advances 4,64,232.08 5,12,395.29 48,163.21 10.37
Fixed Assets 7,805.21 7,903.51 98.30 1.26
Other Assets 62,534.55 71,726.80 9,192.25 14.70
Total Assets 7,71,791.46 8,79,189.16 1,07,397.70 13.92

Overall, HDFC Bank's balance sheet shows that it has been able to grow its operations and strengthen its financial position.
Overall, the balance sheet of ICICI Bank for the financial year 2017-2018 shows a positive trend in the bank's financial performance,
with an increase in both liabilities and assets

Table 2: For the years 2018 to 2019:

Comparative study of Balance sheet of HDFC Bank for the Financial Year 2018 - 2019 ( In Crores)
As on 31st March As on 31st March Increase /
Equity And Liabilities %
2018 2019 Decrease
Equity Share Capital 519.02 544.66 25.64 4.94
Reserves & Surplus 1,05,775.98 1,48,661.69 42,885.71 40.54
Deposits 7,88,770.64 9,23,140.93 1,34,370.29 17.04
Borrowings 1,23,104.97 1,17,085.12 -6,019.85 -4.89
Other Liabilities & Provisions 45,763.72 55,108.29 9,344.57 20.42
Total Capital and Liabilities 10,63,934.33 12,44,540.69 1,80,606.36 16.98
Cash and Balances with Reserve Bank of
India 1,04,670.47 46,763.62 -57,906.85 -55.32
Balances with Banks Money at Call and
Short Notice 18,244.63 34,584.02 16,339.39 89.56
Investments 2,42,200.24 2,90,587.88 48,387.64 19.98
Advances 6,58,333.09 8,19,401.22 1,61,068.13 24.47
Fixed Assets 3,607.20 4,030.00 422.80 11.72
Other Assets 36,878.70 49,173.95 12,295.25 33.34
Total Assets 10,63,934.33 1244540.69 1,80,606.36 16.98

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Comparative study of Balance sheet of ICICI Bank for the Financial Year 2018 - 2019 (In Crores)
As on 31st As on 31st March Increase /
Equity And Liabilities %
March 2018 2019 Decrease
Equity Share Capital 1,285.81 1,289.46 3.65 0.28
Reserves & Surplus 1,03,873.12 1,07,078.58 3,205.46 3.09
Deposits 5,60,975.21 6,52,919.67 91,944.46 16.39
Borrowings 1,82,858.62 1,65,319.97 -17,538.65 -9.59
Other Liabilities & Provisions 30,196.40 37,851.46 7,655.06 25.35
Total Capital and Liabilities 8,79,189.16 9,64,459.14 85,269.98 9.70
Cash and Balances with Reserve Bank of
India 33,102.38 37,858.01 4,755.63 14.37
Balances with Banks Money at Call and
Short Notice 51,067.00 42,438.27 -8,628.73 -16.90
Investments 2,02,994.18 2,07,732.68 4,738.50 2.33
Advances 5,12,395.29 5,86,646.58 74,251.29 14.49
Fixed Assets 7,903.51 7,931.43 27.92 0.35
Other Assets 71,726.80 81,852.17 10,125.37 14.12
Total Assets 8,79,189.16 9,64,459.14 85,269.98 9.70

Overall, HDFC Bank's balance sheet for the year 2018 to 2019 shows that it has been able to maintain a strong financial
position and grow its operations. The balance sheet of ICICI Bank for the financial year 2018-2019 shows that the bank has been
able to maintain its stability, liquidity, and profitability.
Table 3: For the years 2019 to 2020:
Comparative study of Balance sheet of HDFC Bank for the Financial Year 2019 - 2020 ( In Crores)
As on 31st March As on 31st March Increase /
Equity And Liabilities %
2019 2020 Decrease
Equity Share Capital 544.66 548.33 3.67 0.67
Reserves & Surplus 1,48,661.69 1,70,437.70 21,776.01 14.65
Deposits 9,23,140.93 11,47,502.29 2,24,361.36 24.30
Borrowings 1,17,085.12 1,44,628.54 27,543.42 23.52
Other Liabilities & Provisions 55,108.29 67,394.40 12,286.11 22.29
Total Capital and Liabilities 12,44,540.69 15,30,511.26 2,85,970.57 22.98
Cash and Balances with Reserve Bank of
India 46,763.62 72,205.12 25,441.50 54.40
Balances with Banks Money at Call and Short
Notice 34,584.02 14,413.60 -20,170.42 -58.32
Investments 2,90,587.88 3,91,826.66 1,01,238.78 34.84
Advances 8,19,401.22 9,93,702.87 1,74,301.65 21.27
Fixed Assets 4,030.00 4,431.92 401.92 9.97
Other Assets 49,173.95 53,931.09 4,757.14 9.67
Total Assets 12,44,540.69 15,30,511.26 2,85,970.57 22.98

Comparative study of Balance sheet of ICICI Bank for the Financial Year 2019 - 2020 ( In Crores)
As on 31st As on 31st March Increase /
Equity And Liabilities %
March 2019 2020 Decrease
Equity Share Capital 1,289.46 1,294.76 5.30 0.41
Reserves & Surplus 1,07,078.58 1,15,209.65 8,131.07 7.59
Deposits 6,52,919.67 7,70,968.99 1,18,049.32 18.08
Borrowings 1,65,319.97 1,62,896.76 -2,423.21 -1.47
Other Liabilities & Provisions 37,851.46 47,994.99 10,143.53 26.80
Total Capital and Liabilities 9,64,459.14 10,98,365.15 1,33,906.01 13.88
Cash and Balances with Reserve Bank of
India 37,858.01 35,283.96 -2,574.05 -6.80
Balances with Banks Money at Call and
Short Notice 42,438.27 83,871.78 41,433.51 97.63
Investments 2,07,732.68 2,49,531.48 41,798.80 20.12
Advances 5,86,646.58 6,45,289.97 58,643.39 10.00
Fixed Assets 7,931.43 8,410.29 478.86 6.04
Other Assets 81,852.17 75,977.67 -5,874.50 -7.18
Total Assets 9,64,459.14 10,98,365.15 1,33,906.01 13.88

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Overall, HDFC Bank's balance sheet shows for the year 2019 to 2020 that it has been able to grow its operations and
maintain a strong financial position. Furthermore, the bank's overall strong liquidity position, as indicated by the significant increase
in balances with banks and cash and balances with the Reserve Bank of India, puts ICICI Bank in a favourable position to weather
any unexpected market turbulence.

Table 4: For the years 2020 to 2021:

Comparative study of Balance sheet of HDFC Bank for the Financial Year 2020 - 2021 ( In Crores)
As on 31st March As on 31st March Increase /
Equity And Liabilities %
2020 2021 Decrease
Equity Share Capital 548.33 551.28 2.95 0.54
Reserves & Surplus 1,70,437.70 2,03,169.55 32,731.85 19.20
Deposits 11,47,502.29 13,35,060.22 1,87,557.93 16.34
Borrowings 1,44,628.54 1,35,487.32 -9,141.22 -6.32
Other Liabilities & Provisions 67,394.40 72,602.15 5,207.75 7.73
Total Capital and Liabilities 15,30,511.26 17,46,870.52 2,16,359.26 14.14
Cash and Balances with Reserve Bank of
India 72,205.12 97,340.74 25,135.62 34.81
Balances with Banks Money at Call and
Short Notice 14,413.60 22,129.66 7,716.06 53.53
Investments 3,91,826.66 4,43,728.29 51,901.63 13.25
Advances 9,93,702.87 11,32,836.62 1,39,133.75 14.00
Fixed Assets 4,431.92 4,909.32 477.40 10.77
Other Assets 53,931.09 45,925.89 -8,005.20 -14.84
Total Assets 15,30,511.26 17,46,870.52 2,16,359.26 14.14

Comparative study of Balance sheet of ICICI Bank for the Financial Year 2020 - 2021 ( In Crores)
As on 31st As on 31st March Increase /
Equity And Liabilities %
March 2020 2021 Decrease
Equity Share Capital 1,294.76 1,383.41 88.65 6.85
Reserves & Surplus 1,15,209.65 1,46,125.77 30,916.12 26.83
Deposits 7,70,968.99 9,32,522.16 1,61,553.17 20.95
Borrowings 1,62,896.76 91,630.96 -71,265.80 -43.75
Other Liabilities & Provisions 47,994.99 58,770.37 10,775.38 22.45
Total Capital and Liabilities 10,98,365.15 12,30,432.67 1,32,067.52 12.02
Cash and Balances with Reserve Bank of
India 35,283.96 46,031.19 10,747.23 30.46
Balances with Banks Money at Call and
Short Notice 83,871.78 87,097.06 3,225.28 3.85
Investments 2,49,531.48 2,81,286.54 31,755.06 12.73
Advances 6,45,289.97 7,33,729.09 88,439.12 13.71
Fixed Assets 8,410.29 8,877.58 467.29 5.56
Other Assets 75,977.67 73,411.21 -2,566.46 -3.38
Total Assets 10,98,365.15 12,30,432.67 1,32,067.52 12.02

Overall, HDFC Bank's balance sheet shows that it has been able to maintain a strong financial position and grow its
operations despite the challenging economic conditions due to the COVID-19 pandemic. Overall, the balance sheet indicates that
the bank is in a strong financial position with a healthy balance of assets and liabilities.

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Table 5: For the years 2021 to 2022:

Comparative study of Balance sheet of HDFC Bank for the Financial Year 2021 - 2022 ( In Crores)
As on 31st March As on 31st March Increase /
Equity And Liabilities %
2021 2022 Decrease
Equity Share Capital 551.28 554.55 3.27 0.59
Reserves & Surplus 2,03,169.55 2,39,538.38 36,368.83 17.90
Deposits 13,35,060.22 15,59,217.44 2,24,157.22 16.79
Borrowings 1,35,487.32 1,84,817.21 49,329.89 36.41
Other Liabilities & Provisions 72,602.15 84,407.46 11,805.31 16.26
Total Capital and Liabilities 17,46,870.52 20,68,535.04 3,21,664.52 18.41
Cash and Balances with Reserve Bank of
India 97,340.74 1,29,995.64 32,654.90 33.55
Balances with Banks Money at Call and Short
Notice 22,129.66 22,331.29 201.63 0.91
Investments 4,43,728.29 4,55,535.69 11,807.40 2.66
Advances 11,32,836.62 13,68,820.93 2,35,984.31 20.83
Fixed Assets 4,909.32 6,083.66 1,174.34 23.92
Other Assets 45,925.89 85,767.83 39,841.94 86.75
Total Assets 17,46,870.52 20,68,535.04 3,21,664.52 18.41

Comparative study of Balance sheet of ICICI Bank for the Financial Year 2021 - 2022 ( In Crores)
As on 31st As on 31st March Increase /
Equity And Liabilities %
March 2021 2022 Decrease
Equity Share Capital 1,383.41 1,389.97 6.56 0.47
Reserves & Surplus 1,46,125.77 1,69,122.01 22,996.24 15.74
Deposits 9,32,522.16 10,64,571.61 1,32,049.45 14.16
Borrowings 91,630.96 1,07,231.36 15,600.40 17.03
Other Liabilities & Provisions 58,770.37 68,982.79 10,212.42 17.38
Total Capital and Liabilities 12,30,432.67 14,11,297.74 1,80,865.07 14.70
Cash and Balances with Reserve Bank of
India 46,031.19 60,120.82 14,089.63 30.61
Balances with Banks Money at Call and
Short Notice 87,097.06 1,07,701.54 20,604.48 23.66
Investments 2,81,286.54 3,10,241.00 28,954.46 10.29
Advances 7,33,729.09 8,59,020.44 1,25,291.35 17.08
Fixed Assets 8,877.58 9,373.82 496.24 5.59
Other Assets 73,411.21 64,840.12 -8,571.09 -11.68
Total Assets 12,30,432.67 14,11,297.74 1,80,865.07 14.70

Overall, the comparative study of the balance sheet shows that HDFC Bank has experienced significant growth in its
capital, liabilities, and assets, which indicates that the bank has been performing well and has been able to generate profits. Overall,
the bank's balance sheet shows a positive growth trend, indicating a healthy financial position.
IX. FINDINGS:
HDFC Bank:
HDFC Bank's balance sheet from 2017-2018 showed a 23.16% increase in total capital and liabilities, driven by an increase
in deposits, borrowings, and cash reserves. The financial year 2018-2019 saw a 16.98% increase in total capital and liabilities,
with a focus on reserves and surplus, deposits, and advances. HDFC Bank's 2019-2020 balance sheet reported a 22.98%
increase in total capital and liabilities, with deposits, borrowings, and investments as the main contributors. The financial year
2020-2021 showed a 14.14% increase in total capital and liabilities, attributed to an increase in reserves and surplus, deposits,
and advances. A comparative study of HDFC Bank's 2021-2022 balance sheet suggests significant growth in capital and
liabilities, driven by increased deposits and borrowings, and a profitable performance.

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ICICI Bank:
The balance sheet of ICICI Bank for FY 2017-2018 indicates growth in equity share capital, reserves & surplus, deposits,
borrowings, and other liabilities & provisions, signifying positive financial performance. The balance sheet of ICICI Bank for
FY 2018-2019 showed a 9.7% increase in total capital and liabilities, driven mainly by deposits and improved utilization of
funds, demonstrating stability, liquidity, and profitability.
The balance sheet of ICICI Bank for FY 2019-2020 indicates significant growth in total capital and liabilities, with
substantial increases in deposits and other liabilities and provisions, improving liquidity and strengthening the bank's position
to face market turbulence. The balance sheet of ICICI Bank for FY 2020-2021 demonstrates a balanced approach to expansion,
with a decrease in borrowings and growth in investments and advances, indicating a robust financial position. In FY 2021-22,
ICICI Bank's balance sheet showed a 14.70% increase in both its total capital and liabilities and assets, with growth in deposits,
borrowings, reserves and surplus, advances, and investments, signifying positive growth trends.
X. SUGGESTION:
 Maintain a balanced approach to expansion: Both banks have demonstrated a balanced approach to expansion, which
has led to their sustained growth. They should continue to focus on this approach to ensure long-term sustainability
and profitability.
 Focus on increasing profitability: Both banks should focus on increasing profitability by utilizing their funds
effectively and investing in profitable assets. This can be achieved by identifying new revenue streams, improving
operational efficiency, and reducing costs.
XI. CONCLUSION:
The comparative analysis suggests that HDFC Bank has demonstrated higher growth rates in total income and
reserves and surplus, while ICICI Bank has shown consistent growth in total capital and liabilities. Both banks have
maintained a strong liquidity position and have focused on effective management of provisions and contingencies.
Therefore, the banks should continue to diversify their revenue streams, monitor loan-to-deposit ratios, and explore
partnerships with fintech companies to improve their efficiency and customer experience.
XII. REFERENCE:
 Dr. Seema Pandit, J. G. (2021). A Comparative Study on the Financial Performance of SBI and HDFC Bank
based on CAMEL Model. International Journal of Scientific Research in Engineering and Management, 5(5), 11.
 Thakur, N. (2020, June). A Study on Financial Statement Analysis of HDFC Bank. Mukta Shabd Journal, 9(6),
2343-2353.

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